FAQs on NAIA, 31 October 2011
How much will it cost to renovate NAIA ?
We estimate it will cost P500 million to renovate the interiors of NAIA for both Arrival and Departure Levels and P500 million to create a better outdoor arrival extension area, including a park, restaurants and shops, and a new three-storey parking garage in place of the present open-air parking lot which offers little shade to protect passengers and well-wishers from sun or rain.
The NAIA Renovation Project
Interior renovation –
o Arrival Level Baggage Claim / Customs / Lobby
o Departure Level Check-in counters, Terminal Fee, Passport Control, Security Area, DFP and Concessions
o Satellite / Concourse
o Flooring, Lighting, Finishes
o Note : bathroom renovations already underway and under separate contract / budget
Exterior / Car Park area –
o Arrival extension
o Transfer of parking lot to 3-level parking garage
o Conversion of parking lot into Park
o Addition on new concessionaire spaces and Duty Free Shop
Who will implement the project ?
The project will be implemented by the Manila International Airport Authority (MIAA), the agency which operates the four air terminals of Manila – NAIA, Centennial or Terminal 2, Terminal 3, and Domestic Airport.
Who will decide in the project ?
The decision for the project will be with the MIAA Board of Directors.
How can the project be funded ?
As an airport authority, MIAA functions like a government-owned and controlled corporation with its own funds. The possible sources of funds for this project could be a P50 per passenger share of terminal fee (i.e., 7.5M x P50 or P375M); partnership with a concessionaire for Parking; partnership with Duty Free Philippines for retail space; possible partnership with Master Concessionaire for other retail space; its own capital budget for 2011 and 2012; and even loans.
Once completed, NAIA should be able to generate revenues from the parking area plus new revenue stream from additional leases on new retail space in the park as well as improved retail spaces inside the terminal.
Is it worth investing in NAIA ? Why not just move the international airport to Clark ?
While an airport at Clark is being studied, it is unlikely that Clark could be fully operational as an airport for at least another five years, possibly ten. The main reason is that a high-speed rail connection will need to be built to connect Manila and Clark, a distance of 100 kilometers, to transport both passengers and cargo. Though Clark itself could be open as an airport before the rail link is completed, additional terminal capacity would still need to be built. In the meantime, all terminals in Manila will need to remain open while all this construction takes place.
Where will the international airport eventually be located – Manila or Clark ?
It’s quite possible that the Metro Manila together with Region III (Central Luzon) and Region IV (Southern Tagalog, CALABARZON) may need both Manila and Clark as airports. Studies are underway to determine whether both airports are needed. With air traffic and arrivals expected to grow, both Manila and Clark may be needed. The use of two or more airports is already common practice in many mega-cities such as Tokyo, New York, Washington DC, London, and Paris.
The MIAA complex is composed of a total of four air terminals. Based on MIAA’s terminal utilization report for 2009 and 2010, NAIA 1 and 2 are highly congested. Total use for all four terminals is nearing capacity. Assuming a conservative increase of 5% for 2011 and 2012, total passenger flow is expected to reach 30 million by end-2012, almost equal to the combined capacities of the four terminals.
Total capacity Projected Passenger Flows
(passengers/year) 2009 2010
NAIA 1 6.5M 6.9M 7.3M
NAIA 2 (Centennial) 7.5M 8.6M 8.9M
NAIA 3 (T3) 14.0M 7.3M 9.5M
Old Domestic 3.0M 1.0M 1.4M
Total 31.0M 23.8M 27.1M
Using only a single airport at Manila or Clark has its disadvantages. Manila is already too congested in terms of air and runway capacity which causes frequent delays and limits traffic. Keeping a single international airport in Manila would seriously limit the number of visitors to the Philippines. MIAA complex only has one set of runways and it is fully-utilized. Additional terminal capacity at MIAA is not a long-term solution unless additional runway capacity is created either by building new ones (not likely) or by relocating General Aviation to another location (more likely).
On the other hand, an international airport at Clark would make it the airport located the furthest from a central business district. Clark is located 100 kilometers from Makati, even further than Narita is located from Tokyo’s central business district (about 70 kilometers). Even with the presence of a high-speed rail link, the travel time to the central business district will be 45 minutes to a central terminal.
All four terminals will remain in use over the medium-term (10 years at least). Even assuming that Clark is developed into the main international gateway with a high-speed train link to Metro Manila, there is a good argument for maintaining international airport complexes to service NCR and rest of Luzon in the same way that other major cities of similar or larger size have two airports (Narita / Haneda; CDG / Orly; Heathrow / Gatwick; JFK / La Guardia / Newark).
Source: National Competitiveness Council
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